The term “practicable” can often be confusing in legal terms and contexts. Thankfully, with a bit of explanation, it doesn’t have to stay that way.
In a nutshell, practicable refers to something that is possible and realistic. It is a way of qualifying a circumstance or demand as either a modality of execution you can consider or one that should not be considered.
For example, a company taking out a business loan would be asked to provide a realistic repayment plan for the loan. If a plan is proposed that is not practicable, the loan would be rejected. It would be “impractical,” something that is not possible or feasible.
Understanding What’s Practicable In Business
In a business context, there are a number of ways to understand what’s practicable. In order to determine what a practical outcome could look like, a business must:
- Understand the objectives of the business and what it is trying to achieve.
- Establish what resources are available and how these can be used to achieve the desired outcome.
- Analyze the financial and operational implications of various options.
- Determine the best course of action, taking into account any potential risks and benefits.
When applied strategically and responsibly, the term ‘practicable’ can be used to benefit any business. It affords a sense of control, enabling those in charge to weigh up the best course of action and make decisions based on realistic and achievable objectives.
Using Practicable When Making A Decision
The concept of “practicable” should not be overlooked as an important part of decision-making in businesses. Whenever taking a decision, it is important to make sure that the outcome is practicable and realistic. This means evaluating all the potential risks and seeing how those risks can be mitigated. It also ensures that all options and outcomes have been considered, and that a decision is taken with a clear and realistic idea of its implications.
By understanding what is practicable, businesses can be sure that they are making the best decisions for the future of the company and its stakeholders.